Posts tagged toFood retail

December is the most prolific season in the UK and in many other areas worldwide for retailers and consumers and this is demonstrated by shopping behavior during this time. Retailers are in the process of revealing their Christmas sales over a period where we can compare results to last year, and understand why certain areas have achieved, and why some others have not. For Christmas 2017, discounters have enjoyed great growth, despite consumer spending remaining weak overall. Department stores and luxury food retailers on the other hand, have experienced the… Read more

The global market in organic food expanded between 2012 and 2016 at a compound annual growth rate (CAGR) of 10.9%, and is forecast to accelerate to a value of $187.6 billion by 2021, representing a CAGR of 13.8%, according to research firm MarketLine. The company’s latest report states that the US will remain the largest single market, rising from $44.9 billion in 2016 to $63.4 billion by 2021 at a CAGR of 7.1%, underlining the country’s pivotal role in driving global growth. Christopher Leyman-Nicholls, Analyst for MarketLine, says: “Although the… Read more

In recent years, there has been a growing awareness of food waste in the UK and a number of initiatives developed in an attempt to reduce this. Several retailers in the UK have pledged to drive down food waste from stores, while numerous campaigns have aimed to educate individuals and cut the amount of food waste from households. UK charity, Waste & Resources Action Programme (WRAP), has been at the forefront of campaigns. In 2007, WRAP launched its ‘Love Food Hate Waste’ campaign backed by the government. Results from some… Read more

The deal, announced in January 2017, grants several benefits to Tesco. It means that the incumbent retailer can expand even faster in the UK food convenience sector, the fastest growing part of the grocery market for a number of years. The merger with Booker will also give the retail giant the access to a new territory – the “out-of-home” eating market, as it will be taking over the supplier to a string of restaurants and cinemas. This is a new area for Tesco, but one that accounts for around a… Read more

Supermarkets in the UK have faced a tough marketplace in recent years. The recession, and the accompanying squeeze on incomes, has led to many consumers becoming shrewd in their purchases and increasingly looking to find the cheapest option. This has led to a climate in which discounters, and in particular Aldi and Lidl, have been able to thrive. The impact on the big four supermarkets has been evident. Tesco, Sainsbury’s, Asda, and Morrison’s have all seen sales fall and profits eroded. Asda, Tesco, Sainsbury’s, and Morrison’s all responded to the… Read more

The Russian food market is amongst the largest and most populated globally. As the population of 146 million people continues to grow, they are also buying more food. There are a lot of opportunities for further development, especially in the convenience segment, as the grocery retail market is significantly less saturated than in Western Europe. Changes in tastes and technology have opened up the sector to new suppliers and new ideas. However, after almost a decade of double digit growth, this over $300bn market has seen a significant deceleration recently… Read more

England has become the final part of the UK to introduce a charge for plastic carrier bags in a bid to slash the 7.6 billion handed out annually. However, several caveats and exemptions may stifle the scheme’s success compared to other parts of the UK. Although some retailers (such as M&S and the German discounters Aldi and Lidl) have already introduced plastic bag charges, the government has moved to employ a strategy used in Scotland, Wales, and Northern Ireland which has reduced consumption of plastic bags dramatically. The 7.6 billion… Read more

As of October 1, 2015 new consumer protection measures came into force in the UK. Under the Consumer Rights Act, customers are now entitled to a full refund on faulty goods for up to 30 days after the purchase. This area was previously rather sketchy, with consumers only being entitled to refunds for a ‘reasonable time’. A further measure has been the introduction of new protection for those purchasing digital content, allowing for a replacement on downloads that do not work. What’s more, if a digital download infects a user’s… Read more

Morrisons, Britain’s fourth-largest grocer, is in advanced talks to sell its convenience stores to investment firm Greybull Capital as new chief executive David Potts seeks to focus the business on its traditional supermarket estate. Greybull was working with a team of industry executives to take over about 150 stores that trade as M local and generate annual sales of about GBP 300m (approximately $494m). The convenience sector has become a primary focus for many UK retailers reeling from the discounter industry disruption, which has seen Aldi and Lidl wrestle market… Read more

Superfood powders are marketed for their myriad of supposed benefits, from improved skin and increased energy, to preventing conditions and diseases such as diabetes, cancer, and dementia. Superfood powders contain ground down superfoods, freeze dried and fine milled. Products which use the powders include the Super Elixir, boasts strong content and an equally eye watering price. Superfood powders have seen strong growth, although remain only a modicum of the wider market. Vitamix, a smoothie maker has also received celebrity endorsements and a loyal customer base despite its expensive price. Increasing… Read more

Discount supermarket Aldi reported a 65% jump in pre-tax profits in September 2014. More than 95% of Aldi’s products are own label, but many of its products lack direct reference to the retailer. As discussed in the MarketLine case study, Supermarket private labels: growth following economic downturn; market share for retailer brands has increased rapidly over the years, most notably in the UK, Spain, Germany, Italy and the Netherlands. After years of consistent market share increases, private label now has its strongest competitive position ever. Of particular interest is the… Read more

Consumers are becoming increasingly inquisitive about where their products are being manufactured. Private labels now have a similar quality to other renowned brands; and more consumers are now aware that many private label ‘generic brands’ foods are actually made by the same companies that produce higher priced name brands. Such Knowledge has aided growth in this sector. As discussed in the MarketLine case study, Supermarket private labels: growth following economic downturn, supermarkets are changing consumer perception. Consumers are not having to compromise on the quality of products if they purchase… Read more

During a time of financial crisis and low disposable income, consumers are less likely to buy expensive, branded food products. According to the Office for National Statistics, disposable income available to households fell 1.7% between the end of 2012 and the first three months of 2013; the biggest decline since early 1987. As discussed in the MarketLine case study, Supermarket private labels: growth following economic downturn, this has in turn led to consumers seeking out cheaper private label products that they can afford when carrying out their weekly food shopping…. Read more

Introduction Despite the financial differentiation of wealth in the continents the food retail industry is almost equally spread between Americas, Europe and Asia-Pacific. This is due to food production surpluses in North America, Australia and Western Europe that the global food market is close to equilibrium. The global food retail industry grew by with compound annual growth rate (CAGR) of 4.8% over last five years, to reach a value in excess of $5.5tn. The greater amount of food is being sold by Supermarkets and Hypermarkets, with the distribution share of… Read more

Despite the residual effects of the 2008 financial crisis still being felt in many nations around the world, particularly in Europe, consumer demand for savory snacks has continued to show growth, not only in developing countries but also developed nations. The global savory snacks market grew by 5.3% in 2012, to reach a value of $89.6 4illion, representing a compound annual growth rate of 5.0% for the period spanning 2008-2012. The Americas proved to have the largest share of the market, with 44.7% of the total value in 2012, Asia-Pacific… Read more

My colleague Nick Wyatt’s recent MarketLine blog paints a sombre picture of the UK high street, with bricks-and-mortar retail hit hard by the rise of online shopping and lack of consumer confidence. However, some high street outlets are experiencing a more positive performance: coffee shops, for example. The UK coffee shop sector has seen strong expansion in revenue and outlet volume for several years. Chief beneficiary of this trend has been Costa, currently the largest branded chain in the UK as measured by the number of outlets. It’s been around… Read more

Coconut water has experienced a lot of initial success in the US due to its unique taste profile and sports nutrition benefits. Now is a pivotal time to further consolidate and grow the market, lest it be dismissed as just another â€˜fadâ€™ category. The myriad of health benefits associated with consumption means that a natural positioning for coconut water has been a healthier alternative to sports nutrition drinks. This has particular appeal to athletes who have become reticent in recent times to consume some of the more commercially popular sports… Read more

Savory snack giant Frito-Lay re-launched its popular SunChips healthier snacking range in the US and Canada in plant-based, 100%-compostable packaging, but the noise created when the product was used led to a significant consumer backlash. As a result, the company has reverted to conventional packaging for most of its SunChips lines in the US, although it has retained the compostable packaging in Canada. This article examines how a lack of attention paid to the packaging’s sensory qualities, to consumers’ key needs from snack packaging, and to managing potential problems in… Read more

Amid data showing that the craft beer sub-sector has posted strong growth in an otherwise dismal US beer category, brewer MillerCoors has pooled all its craft-style domestic and international brands into a new craft-focused division called Tenth and Blake. The UK real ale sub-sector is also showing positive growth in a poor overall environment. The success of craft beer has arisen as it dovetails with various important consumer trends: it fits with the general trend towards trading up; it capitalizes on desires to purchase authentic products; it goes with the… Read more

Dairy manufacturer Müller’s Müllerlight Inspired By cheesecake brand extension has sold over 9 million units in the UK since its launch in mid-2010. The brand appears to have been effective in solving consumers’ conflicting desires for healthy foods and indulgent foods – which is still one of the most important unmet needs for the food industry to address. The success of Inspired By highlights several ways to overcome the problem, and the rewards available to companies that do. Datamonitor’s 2010 Consumer Survey found that across all parts of the world,… Read more

In September 2009, UK-based company Kepak Convenience Foods extended its Rustlers line of hot snacks to include a range of Rustlers Hot Subs microwaveable sandwiches. Sales over the first 12 months of the line’s launch exceeded £10m, accounting for around 10% of the UK’s retail hot snacks market. Thanks in no small part to the expansion of the Subway chain from 300 outlets in 2005 to 1,400 outlets by 2011, the UK fast food market has been reshaped: sandwiches are no longer seen solely as a lunchtime item for office… Read more

In 2006, an online filmmaking duo called EepyBird posted a video featuring an explosive mixture of Diet Coke and Mentos candy. The video rapidly became immensely popular. Mentos’ manufacturer, Perfetti Van Melle, rapidly capitalized on this sudden fame to promote the candy brand, while Coca-Cola lagged behind in its online marketing efforts. Even at the time of the initial Mentos and Diet Coke video in 2006, it was clear that online viral marketing was a vital part of the marketer’s toolbox, and the basic rules have not changed since. If… Read more

In 2009 Cadbury trialed a new packaging format for its Roses chocolates brand, replacing the standard 975g metal tin with a carton box pack. However, a poor sales performance resulted in the company reverting to the tin format for the 2010 Christmas season. This article analyzes the reasons behind Cadbury’s decision, and explores the hypothesis that consumers’ actions relating to sustainability may be at odds with their intentions when brands evoke strong emotions of tradition and nostalgia. This article examines the reasons behind Cadbury’s original packaging switch and subsequent reversal,… Read more

Cereal manufacturers in Australia and New Zealand have struggled to gain traction in the fiber cereal category. Not only do they have to contend with Kellogg’s dominance of the category, but they also face competition from non-cereal products touting the same benefits. This article investigates the appeal of fiber cereal, and how industry players can withstand competition from both within and outside of their category. The fiber cereal markets in Australia and New Zealand are characterized by numerous players, both new and established. Despite the number of products on offer… Read more

Amid a dwindling UK juice and smoothie category, Cherrygood, the UK’s first ready-to-drink cherry juice, has achieved notable market success following its launch in 2009. In its first year of operation the brand reported a turnover of £1.2m. This article will examine how Cherrygood’s unique product attributes and brand marketing have enabled it to form a point of differentiation within the UK juice and smoothie category and in so doing buck the category’s declining trend. The UK juice and smoothie category has fallen foul of cost-conscious consumers following the recession… Read more

In recent times there has been a greater emphasis placed on location when it comes to product. Consumers want to know where a product was produced, and often desire ingredients that are sourced locally. While this is important to consumers for environmental reasons (“food miles” is becoming an increasingly prominent issue), there is also a feeling that local produce is fresher, and that heritage and supporting local businesses is important. Furthermore, regions thrive on their own individuality, with manufacturers and food service chains looking to leverage this by creating numerous… Read more

Brazil is the world’s largest orange grower and orange juice producer and three out of five glasses of orange juice consumed in the world are produced in Brazil. While the country has achieved a leading position in the global market due to its long history of research and investments, it is now facing the challenge of decreasing consumption rates in the most important international consumer markets for Brazilian orange juice. This article examine the reasons why consumers are replacing orange juice with other types of beverages, and what strategies need… Read more

The Mars confectionery brand suffered a decline in UK sales in 2010, despite significant investment in a marketing campaign that coincided with the 2010 World Cup. Various reasons have been suggested for the brand’s declining sales; these include the poor performance of the England football team in the aforementioned football tournament having a negative impact on Mars’s primary marketing focus for the year, and variants of the Mars Bar brand – such as Mars Delight and Mars Planets – underperforming. However, given that the company’s flagship Mars Bar has also… Read more

The launch of Kraft Foods’ 100 calorie Oreo Thin Crisps in 2004 kick-started the 100 calorie food trend and marked a US snack revolution. However, after five consecutive years of market growth, this snack segment is now dwindling. Perhaps surprisingly, this comes at a time when both weight management and convenience remain core consumer issues. This case study will examine both the consumer and market issues that together will determine the future success of this currently diminishing category. In response to rising obesity levels, enhanced working pressures, and an increasingly… Read more

In 2007, UK based company Tesco PLC entered the US grocery market with its Fresh & Easy stores. This article will examine Tesco’s market entry, performance, the difficulties it has faced, and what the future holds for Fresh & Easy. On the surface, the US grocery retail market is an attractive prospect to potential new entrants. It is massive in size and scale compared to the UK, and has the potential to provide huge returns. In reality, grocery retailing in the US is a tough, highly competitive industry where market share… Read more